OIC 2023: Talking 0 DTE with Fidelity

·27 min·2 clips

The options market just hit 1.1 billion contracts in a month—what's driving this insane volume?

Mark Longo hosts from the Options Industry Conference in Nashville, welcoming Greg Stevens and Colin Songer from Fidelity. They open by addressing the historic 1.1 billion monthly options contracts, attributing it to increased volatility and retail trading. The discussion shifts to zero DTE options, which have become a dominant topic at the conference. Greg and Colin explain how Fidelity's clients are using these products for directional plays and to avoid overnight risk. They highlight the importance of education, as zero DTE options require precise timing and risk management. The hosts explore the controversy around zero DTEs, with some viewing them as moving options toward gambling. Greg and Colin take a neutral stance, emphasizing client education over judgment. They delve into the potential expansion of zero DTE products to single-name equities, noting risks like assignment and exercise issues. Greg mentions discussions around cash-settled options and adjusted exercise times to mitigate risks. Colin shares concerns from his experience with client risk management, stressing the dangers of forgetting positions. The conversation broadens to Fidelity's ongoing projects, including new options platforms on mobile and web, aimed at enhancing user experience and education. Greg details the rollout of a new options chain on fidelity.com and a trader dashboard for streaming. They also touch on Fidelity's youth accounts for financial literacy, targeting 13- to 17-year-olds. The episode wraps with a look at industry collaboration and future developments in options trading.

As heard by us

Zero DTE is framed as discipline, time pressure, and a same-day decision.

Mark Longo frames zero DTE trading as a same-day wager on direction, time decay, and discipline, with everything contained inside one session.

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Why you'd press play

Zero DTE is treated like a trade, not a dare: one session, clear risks, and no extra time.

Read the full recommendation in PlayNext →

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